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18 June 2007
Severstal’s Carrington Wire may close plant in the UK
Carrington Wire of the UK may close down its plant in Cardiff, Wales, and consolidate operations, with a smaller workforce, near Leeds in West Yorkshire, Northern England.
Carrington is owned by Severstal-Metiz, part of the Russian Severstal Group.
Severstal-Metiz said: “Carrington Wire Limited needs to further review the operational strategy so that the business can strengthen its presence in increasingly competitive and growth markets…
“We have assessed options to improve the overall efficiencies and effectiveness of the business. We must stay on course towards our strategic goals and this will require strong resolve and working closely with our customers.”
The company expects the merger into one UK site will improve operational efficiencies, competitiveness and customer satisfaction.
Severstal-Metiz is talking with management and unions affected by the possible closure. A final decision is due to be taken in September.
The company said that when it acquired Carrington in 2006 it foresaw problems for the Cardiff plant and planned to increase its profitability and prevent closure.
“But despite all the efforts, the management team cannot resist strong competition from South East Asian countries,” a spokesman told SteelWEEK.
“We have to think not so much about where production takes place, as about our customers and where they are going,” he added.
Carrington produced 142,000t of wire products last year, about 30% of which was exported. Its capacity is 200,000 t/y.
Severstal-Metiz claims a 1.2mt/y output of wire and hardware products.
SteelWEEK
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